Published by Atlantic Institute for Market Studies

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Commodity conditions push equalization into uncharted territory

Historical price of oil (WTI) 2007-Present. Source: Marcotrends.net

By Marco Navarro-Génie, President and CEO

The notion of fairness among Canadians and our beliefs to help one another are going to be tested in the months ahead when some of the implications of the collapse in commodity prices become known. This collapse will have enormous effects on richer western provinces working their way through equalization calculations.

Close to 18-billion are at stake, over half of which go to Quebec in normal circumstances.

But the new economic conditions lead us into uncharted territory, and present more questions than there are answers for them as of yet

To this reality, the federal government is introducing its new carbon tax idea. Answers to some of the basic questions former Finance Minister Joe Oliver raises here need addressing before we venture into taking yet more money out of peoples pockets.